PROGRAMME RATING

Programme rating is a measure of potential reach of broadcast media and is expressed as a percentage. Program rating}

No. of households viewing the programme x 100 Total no. of households owning TV sets

Gross Rating Point GRP is a measure of frequency of exposure and is expressed as GRP = Reach x Frequency.

EFFECTIVE FREQUENCY & REACH

Effective Frequency is the number of exposures, in an advertising cycle, assumed to be able to maximize the target audiences temperament to act.

Effective Reach is the number of target audience individuals reached at the effective frequency level in an advertising cycle.

Media Scheduling Results Should be

Reach + Frequency + Continuity

(how long the campaign runs continuous vs. flighting vs. pulsation) ________________

Results should be 100%

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ADVERTISING IMPACT
No one really knows the exact number of exposures necessary for an ad to make an impact. Impact is the ad message actually being perceived by the audience. Impact is taken into consideration while measuring effective frequency. Most advertisers have settled on three exposures as the least number; fewer than three is assumed to give insufficient reach, and more than ten are considered overexposure and thus ineffective reach.
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Budget Consideration

 One of the important decisions in the development of media strategy is cost estimating. The value of any strategy can be determined by how well it delivers the message to the audience with the lowest cost and least waste. Advertising and Promotional cost can be categorized in two ways. The Absolute cost and Relative Cost

Absolute cost
The absolute cost of the medium or vehicle is the actual total cost required to place the message. for example a full page four color ad in the Newsweek magazine cost about Rs.1,83,000is an absolute cost.

Relative Cost
Relative Cost refers to the relationship between the price paid for advertising time or space and size of audience delivered (it is used to compare media vehicles. Relative Cost are important as Managers must try to optimize audience delivery within budget constraints Relative cost must be evaluated of the media vehicles used for delivering the message.
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Determining Relative Costs of Media.

Relative Costs 1. CPM (Cost Per Thousand)

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Relative Costs 1. CPM (Cost Per Thousand)

Cost per mille (CPM) is also called as cost per thousand (CPT), is a commonly used measurement in advertising.

In Latin mille means thousand, therefore, CPM means cost per thousand.
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Relative Costs CPM (Cost Per Thousand)

Radio,TV,Newspaper,Magazines,advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers (CPM). For years the magazines industry has provided cost breakdowns on the bases of cost per thousand reached. It is used in marketing as a standard to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost. CPM estimates the cost per 1000 views of the advertisement.
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CPM (Cost Per Thousand)

Readers Digest and Success Review

Refer page 273

Cost of ad space(absolute cost)1,000 CPM Circulaton

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Which is more cost efficient on a CPM basis?

Readers Digest
8000 Cost per page CPM = ------------------------x 1000 = 2 .14 3725000 Circulation ____________________________________________________________

Competition Success Review

6000 Cost per page CPM = ---------------------------x 1000 = 1.7 3536,000 Circulation

__________________________________
Here we see that all other things being more or less equal Competition Success Review is more cost effective media vehicle than readers digest.
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CPM Formula and Example

Which is more cost efficient on a CPM basis?

A-- :30 TV Commercial in Friends $250,000 X 1,000 = $12.50 CPM = 20,000,000 B-- :30 TV Commercial in Monday Night Football $300,000 CPM = X 1,000 = $10.00 30,000,000

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CPM Practice Problem

Circulation Per-page cost Time Megazine Rs.202000 News Week Rs.183,000

Circulation
CPM

4,000,000
?

3,100,000
?

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Relative Costs CPM (Cost Per Thousand)

Allows to marketers to compare all media classes and vehicles using the same yardstick Used for all mediums, but primarily print M stands for 1,000 CPM Should not be the only consideration when selecting media CPM Measures cost efficiency, not effectiveness Be careful of inter media comparisons. CPM may over estimate or underestimate the actual cost effectiveness. (page 325) B&B 17

 Relative Costs: CPRP Cost Per Rating Point is used to compare cost figures of Broadcast media.

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Relative Costs: 2. CPRP Cost Per Rating Point

The broadcast media provide a different comparative cost figure, is referred as Cost Per Rating Point.

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Relative Costs: 2. CPRP Cost Per Rating Point

CPRP Cost Per Rating Points formula is ..
Cost of Commercial Time CPRP = --------------------------------------------- X 1000 Programmer Rating (120,000)Cost of Commercial Time CPRP = --------------------------------------------------------x 1000 = 4000 ( 30) Programmer Rating

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CPRP Practice Problem

Sas bhi kabhi
Cost per spot ad Rating Point Reach (households) CPRP $10,000 18 Discovery $7,500 17

197,100
?

186,150
?
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Relative Costs (Newspapers) For News Paper cost effectiveness is based on Daily Inch Rate
News India Times Rs.257 Deccan News Rs.352 For News papers cost effectiveness is on the daily inch rates.. Cost per column inch of the paper
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(Media Selection : Television)

HUT (Households Using Television) Households Using Television for five or more minutes as a percentage of all homes with a TV (also known as TV Households)

No. of Households with TVSets in Use HUT 100 Universe Estimate (All TV Households)

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Media Selection Television RatingEstimated percentage of the universe of TV households (or other specified group) tuned to a program at once. Ratings are expressed as a percent.

Current Nielsen Ratings

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DMA Rank

Programme Rating PR is a measure of potential reach of broadcast media and is expressed as percentage.

Households Viewing Program Rating 100 Universe Estimate (All TV Households)

30 PR_____X 100 = 30 100

Current Nielsen Ratings

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DMA Rank

Rating Practice Problem

Assume there are 10 TV households in the tiny hamlet of Kompally, AP. Four of those households are watching Sasbhi Kabhi Bahu thi on Chanel 7

Two other homes are watching DON " - a reality show, in which viewers are forced to locate bags of chips and open PEPSI cans - all without any outside help!
What is the Rating for that Channel 7 show in Kompally?

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KOMPALLY,SECUNDERABAD
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Share
ShareThe percent of households (or persons) using television who are tuned to a specific program, station or network in a specific area at a specific time.

Households Viewing Program Share 100 Number of Households Using TV Rating Share 100 HUT (Households Using Television )
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HUT, Rating, Share Examples

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GRPs (Gross Rating Points)

Gross Rating Pointsmeasures the impact or weight delivered by a particular media schedule. A duplicated rating (reach), so the number can exceed 100 Gives an idea about the odds of the target audience actually viewing ad

Guidelines
2500 GRPs = 70% awareness 1000-2500 GRPs = 33% awareness <1000 = almost no awareness
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GRPs (Gross Rating Points)

GRPs Reach Frequency

OR

GRPs sum of all ratings (average rating x no. of spots)

If GRPs for a certain media schedule are 90 then..
45% of target market saw ad twice or 90% of target market saw ad once or 10% of target market saw ad 9 times, etc.

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Calculating GRPs and Frequency

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